Subprime hits keep on comin'

Doug Krizner: The markets have been troubled by the continuing
fallout of the subprime mortgage mess. Yesterday Fed Chair Ben Bernanke said
subprime losses could reach $100 billion, and investment banking giant JP Morgan
Chase said the worst may not be over. Ashley Milne-Tyte reports.

Ashley Milne-Tyte: The market in bonds backed by mortgages
has tripled since 2000.

Real estate analyst Mike Larson is with Weiss Research. He says given the
amount of money invested in these types of bonds, it’s no wonder the pain of
the melting mortgage market is so widespread.

Larson says investors in these and similar securities won’t see losses slow
till the end of next year at the earliest.

Mike Larson: In the worst-case scenario, some funds will
be practically wiped out, like we saw with the Bear Stearns funds announced
this week. In other cases they’ll just be write-downs, but it won’t cause
the entire fund to go belly-up. But this is a gonna be a problem we’ll be
dealing with for some time.